Khetan plans to revive Nepal Orind Magnesite

DOLAKHA, JAN 26 -

The Khetan Group has planned to bring Nepal Orind Magnesite back to life. The company, which produces dead burnt magnesite (DBM) used to provide heat in factories, has remained practically moribund for several years

The Khetan Group is one of the three equity partners in the company which is located at Lakuridada, Dolakha

district to the east of Kathmandu. Prompted by its interest in reviving the company, the government is getting ready to hand over the management to it.

Earlier efforts by the government and the Indian equity partner to run the factory had failed miserably. The government owns 75 percent of the company, Khetan Group 12.5 percent and Orissa Industry 12.5 percent.  

Dinesh Raj Bhattarai, honorary executive director of the company, said that a test operation of the factory had been successful and that they would go for full operation soon. He added that the company would target the domestic and Indian markets to sell its products . It is estimated that there are magnesite deposits of 180 million tonnes in a 2 sq km area where the factory is located. Dead burnt magnesite costs Rs 25,000 per tonne while caustic calcined magnesite costs Rs 16,000 per tonne at Raxaul, India.

Bhattarai said that magnesite had a huge potential market in India. Caustic calcined magnesite is used for producing animal feed, chemical fertilizers and medicines. Dead burnt magnesite is used to maintain high heat in factories. According to Bhattarai, the government was forced to close down the factory as the dead burnt magnesite produced here could not compete with Chinese products.

"Chinese companies offer dead burnt magnesite for US$ 120 per tonne while our product costs US$ 160 per tonne at Indian ports," said Bhattarai. He added that new technology would be used to produce magnesite. "Double stage firing technology will be used," he said.

According to Bhattarai, Nepal Orind Magnesite will produce 80 tonnes of magnesite daily once it resumes operations. The factory is expected to provide employment to 800 people. Supporting the initiative to reopen the factory, former chairman of  Lakuridada village development committee Jit Bahadur said that the factory should also look after social and environmental issues.

Source: The Kathmandu Post